Aveva profits slump after aborted Schneider merger

Full year pre-tax profits at marine engineering software maker Aveva almost halved to £29.4m on the back of lower revenue and one-off exceptional costs related to the aborted merger with Schneider Electric.

Revenue fell to 3% to £201.5m, impacted by foreign currency headwinds during the year with sterling strengthening against most major currencies.

The Schneider Electric deal collapse cost of £15.2m, Aveva said.

“After adjusting for currency effects, organic constant currency revenue declined by 2% compared to 2014/15, a respectable performance given the market conditions,” Aveva said.

Chief executive Richard Longdon said: "The result for the year has highlighted the strength of the AVEVA business model, the value that our technology delivers to our customers and our ability to adapt to changing market conditions through a disciplined approach to innovation and organisational efficiency.”

“Whilst we recognise the challenges in our markets, the Board is confident that we can achieve our targets in the current financial year and over the medium term."